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Starting a business?
Starting a business? / Career / 6:13 PM - Tuesday May 13, 2008
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A Career Man (Male, Chicago, 22-25, Civil Service) asked:


Recently I was talking to a friend, and he had asked me an opinion on an Idea he had for a small business. I wont say what the business is on here cause I dont want him to yell at me for giving his idea to somone else. but what I was wondering is What are some of the major things he should be considering when starting a small business?

he will probly need Insurance for it.
he will have to get a loan to purchase some equipment and to pay for advertising.
is there any special way to get a business started?


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A Thinker (Female, 46-55, Financial / Banking) answered:

Screenname: justpassingthru


You MUST check with the city and state licensing entities. There are tax and licensing requirements for businesses, and way too many people just jump in without knowing what they are. Then they get some very unwelcome surprises in the form of FINES and PENALTIES for not following the laws. There are annual permits, sales & use taxes, property taxes, and maybe others depending on where he will be doing business.

Check and see what would be necessary if he will some day need to hire employees. There's worker's comp and payroll taxes to consider.

Check the zoning in the area he wants to open his business.

BE SURE to find out from a CPA whether he's better off for tax purposes to incorporate or be a sole proprietor.

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A Thinker (Female, Chicago, 36-45) answered:

Screenname: phenomenal1woman


depending on the type of business he may have to get a license.also instead of a loan get investors to investin the company and then pay them back when the company shows a profit after a year.

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A Thinker (Female, Sacramento, 46-55, Other Profession) answered:

Screenname: jsj52006


patent the idea, go to the small business bureau in your town.

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